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Market Report

Richmond Office Market Report

2024 Investment Forecast

Richmond’s Suburbs Note Brisk Household Expansion,
Fueling Demand from Office Tenants

Multiple areas boast four-year low vacancy. Richmond’s suburbs continue to be among Virginia’s fastest-growing, underpinning office tenant demand. East and Southwest Richmond, as well as Chesterfield County and Tri-Cities, each entered 2024 with local vacancies at over four-year lows. An influx of higher-income transplants is motivating office expansions from medical and consumer services, highlighted by OrthoVirginia’s occupation of 77,000 square feet in Midlothian and Brockenbrough’s planned move-in to 13,000 square feet in the West End. With Richmond expected to continue posting regionally-high household growth for the foreseeable future, other health, law and financial services firms may expand into the metro’s suburbs to capture growing market share. Still, multiple companies are exiting prominent leases this year, which will drive up marketwide vacancy. Genworth Financial and Berkshire Hathaway are leaving nearly 180,000 square feet vacant this year as they await new offices, while it is unclear whether CoStar will renew its upcoming expiring lease for its 310,000-square-foot building in the CBD.

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